Depending on the extent of a company’s financial and management woes, a business turnaround may not always be possible. Bill H., a business consultant in NYC, asks: “How do I determine if a distressed business I am being asked to help is just too far gone to save?”
Firstly, if a business is in a downward spiral, it may be best for the company to work with corporate distress professionals who are experts in bankruptcy, restructuring, and bankruptcy alternatives.
As a consultant, you can first ask these questions:
By asking these questions and consulting the right professional teams, you can better determine if a business turnaround is possible.
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[Editors’ Note: This 90 Second Lesson is based, in substantial part, on material reprinted from Commercial Bankruptcy Litigation 2d and Strategic Alternatives For and Against Distressed Businesses, with permission of Thomson Reuters. Both books are written for a primary audience consisting of people who are not bankruptcy specialists. This is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to [email protected], and we will try to answer it.
To learn more about this and related topics, you may want to attend the following webinars:
This is an updated version of an article originally published on February 15, 2019 and previously updated June 10, 2021.]
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The editors and editorial board of DailyDAC include preeminent restructuring and insolvency professionals, journalists, and editors. They are devoted to providing reliable and plain English education and deal intelligence about assignments, corporate bankruptcy, receiverships, out-of-court workouts and similar topics.
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